Why You Should Consider Earthquake Insurance
Imagine this scenario. Your area is struck by an earthquake, and your home and belongings suffer considerable damage; your house is temporarily unliveable, you relocate your family to a hotel, call your insurance company and contractors. You’re horrified to find out the damage isn’t covered under your household policy, and that you would have needed to buy earthquake insurance to cover this catastrophe.
While people live in the most parts of the US are comfortable in believing earthquakes are a “”California thing””, and if they don’t live there, they have nothing to worry about, the fact is, earthquakes can happen most anywhere in the US and have struck inland states such as Missouri, Illinois, and Utah. Significant quakes have struck Texas, Virginia, New York State and other locations.
Special earthquake insurance policies cover damage to your property that is not covered by your ordinary household insurance that is most likely required by your lender. Mortgage companies generally do not require earthquake coverage, so you will have to investigate it on your own.
Like any insurance, the cost of the premium will vary depending on the amount of coverage you elect to have, and the deductible that you chose.
There will be several different elements of an earthquake policy, and you will have to pay attention to each one to make sure you have adequate coverage.
The main part of the policy covers the dwelling itself, and you will most like choose coverage that matches the value of your home as stated in your household policy. Usually this policy does not cover parts of your property outside of the main house, like landscaping, pools, and other buildings on the property.
The personal property portion of the policy covers your belongings. Limits vary by policy, and generally do not include extremely fragile belongings, like china or crystal stemware.
ALE or “”additional living expenses”” coverage will provide you with the funds you need to temporarily relocate if your home is unlivable for a period.
Earthquake insurance, no matter where you live, can provide you with peace of mind for the protection of your family, home, and belongings.